When Armeni Toys, Inc. (ATI) receives telephone and fax orders, the billing department prepares an invoice. The
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Question:
When Armeni Toys, Inc. (ATI) receives telephone and fax orders, the billing department prepares an invoice. The invoice is mailed immediately. A copy of the invoice serves as a shipping notice and is sent to the shipping department. The shipping department removes inventory from the warehouse and prepares the shipment. The shipping department then updates the inventory records. The accounts receivable clerk checks the customer's credit before recording the sale in the general journal and the account receivable subsidiary ledger.
Describe (do not just name) at least two internal control weaknesses at ATI (explain how the weakness creates risk.)
Expert Answer:
Lets delve deeper into the internal control weaknesses at Armeni Toys Inc ATI and propose solutions for each 1 Lack of Segregation of Duties Weakness ... View the full answer
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